§ 58‑64‑45. Supervision, rehabilitation, and liquidation.
(a) If, at any time,the Commissioner determines, after notice and an opportunity for the providerto be heard, that:
(1) A portion of anentrance fee escrow account required to be maintained under this Article hasbeen or is proposed to be released in violation of this Article;
(2) A provider has beenor will be unable, in such a manner as may endanger the ability of theprovider, to fully perform its obligations pursuant to contracts for continuingcare, to meet the forecasted financial data previously filed by the provider;
(3) A provider hasfailed to maintain the escrow account required under this Article; or
(4) A provider isbankrupt or insolvent, or in imminent danger of becoming bankrupt or insolvent;
theCommissioner may commence a supervision proceeding pursuant to Article 30 ofthis Chapter or may apply to the Superior Court of Wake County or to thefederal bankruptcy court that may have previously taken jurisdiction over theprovider or facility for an order directing the Commissioner or authorizing theCommissioner to rehabilitate or to liquidate a facility in accordance withArticle 30 of this Chapter.
(b) The definition of"insolvency" or "insolvent" in G.S. 58‑30‑10(13)shall not apply to providers under this Article. Rules adopted by theCommissioner shall define and describe "insolvency" or"hazardous financial condition" for providers under this Article.G.S. 58‑30‑12 shall not apply to facilities under this Article.
(c) If, at any time,the Court finds, upon petition of the Commissioner or provider, or on its ownmotion, that the objectives of an order to rehabilitate a provider have beenaccomplished and that the facility or facilities owned by, or operated by, theprovider can be returned to the provider's management without further jeopardyto the residents of the facility or facilities, the Court may, upon a fullreport and accounting of the conduct of the provider's affairs during therehabilitation and of the provider's current financial condition, terminate therehabilitation and, by order, return the facility or facilities owned by, oroperated by, the provider, along with the assets and affairs of the provider,to the provider's management.
(d), (e) Repealed bySession Laws 1995 (Regular Session, 1996), c. 582, s. 3.
(f) In applying for anorder to rehabilitate or liquidate a provider, the Commissioner shall give dueconsideration in the application to the manner in which the welfare of personswho have previously contracted with the provider for continuing care may bebest served.
(g) An order forrehabilitation shall be refused or vacated if the provider posts a bond, by arecognized surety authorized to do business in this State and executed in favorof the Commissioner on behalf of persons who may be found entitled to a refundof entrance fees from the provider or other damages in the event the provideris unable to fulfill its contracts to provide continuing care at the facilityor facilities, in an amount determined by the Court to be equal to the reservefunding that would otherwise need to be available to fulfill such obligations. (1989, c. 758, s. 1; 1995(Reg. Sess., 1996), c. 582, s. 3; 2003‑193, s. 10.)
§ 58‑64‑45. Supervision, rehabilitation, and liquidation.
(a) If, at any time,the Commissioner determines, after notice and an opportunity for the providerto be heard, that:
(1) A portion of anentrance fee escrow account required to be maintained under this Article hasbeen or is proposed to be released in violation of this Article;
(2) A provider has beenor will be unable, in such a manner as may endanger the ability of theprovider, to fully perform its obligations pursuant to contracts for continuingcare, to meet the forecasted financial data previously filed by the provider;
(3) A provider hasfailed to maintain the escrow account required under this Article; or
(4) A provider isbankrupt or insolvent, or in imminent danger of becoming bankrupt or insolvent;
theCommissioner may commence a supervision proceeding pursuant to Article 30 ofthis Chapter or may apply to the Superior Court of Wake County or to thefederal bankruptcy court that may have previously taken jurisdiction over theprovider or facility for an order directing the Commissioner or authorizing theCommissioner to rehabilitate or to liquidate a facility in accordance withArticle 30 of this Chapter.
(b) The definition of"insolvency" or "insolvent" in G.S. 58‑30‑10(13)shall not apply to providers under this Article. Rules adopted by theCommissioner shall define and describe "insolvency" or"hazardous financial condition" for providers under this Article.G.S. 58‑30‑12 shall not apply to facilities under this Article.
(c) If, at any time,the Court finds, upon petition of the Commissioner or provider, or on its ownmotion, that the objectives of an order to rehabilitate a provider have beenaccomplished and that the facility or facilities owned by, or operated by, theprovider can be returned to the provider's management without further jeopardyto the residents of the facility or facilities, the Court may, upon a fullreport and accounting of the conduct of the provider's affairs during therehabilitation and of the provider's current financial condition, terminate therehabilitation and, by order, return the facility or facilities owned by, oroperated by, the provider, along with the assets and affairs of the provider,to the provider's management.
(d), (e) Repealed bySession Laws 1995 (Regular Session, 1996), c. 582, s. 3.
(f) In applying for anorder to rehabilitate or liquidate a provider, the Commissioner shall give dueconsideration in the application to the manner in which the welfare of personswho have previously contracted with the provider for continuing care may bebest served.
(g) An order forrehabilitation shall be refused or vacated if the provider posts a bond, by arecognized surety authorized to do business in this State and executed in favorof the Commissioner on behalf of persons who may be found entitled to a refundof entrance fees from the provider or other damages in the event the provideris unable to fulfill its contracts to provide continuing care at the facilityor facilities, in an amount determined by the Court to be equal to the reservefunding that would otherwise need to be available to fulfill such obligations. (1989, c. 758, s. 1; 1995(Reg. Sess., 1996), c. 582, s. 3; 2003‑193, s. 10.)
§ 58‑64‑45. Supervision, rehabilitation, and liquidation.
(a) If, at any time,the Commissioner determines, after notice and an opportunity for the providerto be heard, that:
(1) A portion of anentrance fee escrow account required to be maintained under this Article hasbeen or is proposed to be released in violation of this Article;
(2) A provider has beenor will be unable, in such a manner as may endanger the ability of theprovider, to fully perform its obligations pursuant to contracts for continuingcare, to meet the forecasted financial data previously filed by the provider;
(3) A provider hasfailed to maintain the escrow account required under this Article; or
(4) A provider isbankrupt or insolvent, or in imminent danger of becoming bankrupt or insolvent;
theCommissioner may commence a supervision proceeding pursuant to Article 30 ofthis Chapter or may apply to the Superior Court of Wake County or to thefederal bankruptcy court that may have previously taken jurisdiction over theprovider or facility for an order directing the Commissioner or authorizing theCommissioner to rehabilitate or to liquidate a facility in accordance withArticle 30 of this Chapter.
(b) The definition of"insolvency" or "insolvent" in G.S. 58‑30‑10(13)shall not apply to providers under this Article. Rules adopted by theCommissioner shall define and describe "insolvency" or"hazardous financial condition" for providers under this Article.G.S. 58‑30‑12 shall not apply to facilities under this Article.
(c) If, at any time,the Court finds, upon petition of the Commissioner or provider, or on its ownmotion, that the objectives of an order to rehabilitate a provider have beenaccomplished and that the facility or facilities owned by, or operated by, theprovider can be returned to the provider's management without further jeopardyto the residents of the facility or facilities, the Court may, upon a fullreport and accounting of the conduct of the provider's affairs during therehabilitation and of the provider's current financial condition, terminate therehabilitation and, by order, return the facility or facilities owned by, oroperated by, the provider, along with the assets and affairs of the provider,to the provider's management.
(d), (e) Repealed bySession Laws 1995 (Regular Session, 1996), c. 582, s. 3.
(f) In applying for anorder to rehabilitate or liquidate a provider, the Commissioner shall give dueconsideration in the application to the manner in which the welfare of personswho have previously contracted with the provider for continuing care may bebest served.
(g) An order forrehabilitation shall be refused or vacated if the provider posts a bond, by arecognized surety authorized to do business in this State and executed in favorof the Commissioner on behalf of persons who may be found entitled to a refundof entrance fees from the provider or other damages in the event the provideris unable to fulfill its contracts to provide continuing care at the facilityor facilities, in an amount determined by the Court to be equal to the reservefunding that would otherwise need to be available to fulfill such obligations. (1989, c. 758, s. 1; 1995(Reg. Sess., 1996), c. 582, s. 3; 2003‑193, s. 10.)
